ITO, New Delhi V. Smt. Kiran Kapoor, New Delhi

ITA 3747/DEL/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6394 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 02-07-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 11-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S N BHATIA
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : D : NEW DELHI BEFORE SHRI R.S. SYAL, AM AND SHRI C.M. GARG, JM ITA NO.3747/DEL/2013 ASSESSMENT YEAR : 2006-07 ITO, WARD 23(2), ROOM NO.1208, PRATYAKSH KAR BHAWAN, CIVIC CENTRE, MINTO ROAD, NEW DELHI. VS. KIRAN KAPOOR, PROP. M/S RAMSA ENTERPRISES, M-75, GREATER KAILASH-II, NEW DELHI. PAN: AALPK5311M ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY : SHRI TARANDEEP SINGH, CA DEPARTMENT BY : S HRI S.N. BHATIA, SR. DR ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE LD. CIT(A) ON 20.03.2013 DELETING THE PENALTY I MPOSED BY THE AO U/S 271(1)(C) OF THE INCOME-TAX ACT, 1961 (HEREI NAFTER ALSO CALLED THE ACT) IN RELATION TO THE ASSESSMENT YE AR 2006-07. 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE CLAIMED DEDUCTION U/S 10B AMOUNTING TO ` 39,32,654/- WHICH WAS ITA NO.3747/DEL/2013 2 DENIED BY THE AO. PURSUANT TO SUCH ADDITION, THE AO IMPOSED PENALTY U/S 271(1)(C) OF THE ACT AMOUNTING TO ` 13,38,194/- WITH REFERENCE TO THE DISALLOWANCE OF DEDUCTION U/S 10B. THE LD. CIT(A) ORDERED FOR THE DELETION OF PENALTY. 3. HAVING HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE QUESTIO N OF DENIAL OF DEDUCTION U/S 10B CAME UP FOR CONSIDERATION BEFORE THE TRIBUNAL IN QUANTUM PROCEEDINGS. VIDE ITS ORDER DATED 07.05 .14 IN ITA NO.3911/DEL/09, THE TRIBUNAL HAS HELD THE ASSESSEE TO BE ELIGIBLE TO THE BENEFIT OF DEDUCTION U/S 10B. IN VIEW OF TH E FACT, THAT THE VERY BEDROCK OF THE PENALTY, BEING THE DENIAL OF DE DUCTION U/S 10B, CEASES TO EXIST BY VIRTUE OF THE TRIBUNAL ORDE R, WE ARE OF THE CONSIDERED OPINION THAT THERE CAN BE NO QUESTION OF ANY PENALTY. WE, THEREFORE, UPHOLD THE IMPUGNED ORDER DELETING T HE PENALTY. 4. IN THE RESULT, THE APPEAL IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 04.07.201 4. SD/- SD/- [ C.M. GARG ] [ R.S. SYAL ] JUDICIAL MEMBER ACCOUNTANT MEMBER ITA NO.3747/DEL/2013 3 DATED, JULY, 2014. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.